The financials sector remains the S&P 500's worst-performing of the year, but one technician thinks it's time for investors to flock to the embattled stock group.
Looking at a chart of the ETF tracking the financials (XLF), Craig Johnson, technical analyst at Piper Jaffray, believes it is taking a technical turn for the better. He sees the XLF reversing a downtrend that occurred after the sector's July 15 highs, and three bottoms that form what Johnson calls a "classic kind of bottoming setup" that could suggest that the XLF could break out.
Just how high could XLF go?
"From my perspective, it looks like there's about 15 or 20 percent upside from here just purely based upon the charts," he said Tuesday on CNBC's "Power Lunch."